Waaree Energies IPO 2024 Highlights GMP: Check latest GMP, Price Band, Allotment Date, Listing & More

As of June 30, 2023, Waaree Energies catered to 373 customers in India and 20 internationally. By 2023, this figure rose to 566 customers in India and 33 abroad. In 2022, the company had a total of 716 customers in India and 26 overseas, while as of March 31, 2021, it had served 1,381 customers in India and 31 international clients.

Waaree Energies’ IPO is set to raise Rs 4,321.44 crore, and it has already been oversubscribed, receiving bids worth Rs 10,562.45 crore by October 22 (Day 2). The IPO consists of two components: the issuance of fresh shares and an Offer for Sale (OFS).

The funds from the Fresh Issue will primarily be used to establish a 6GW manufacturing facility in Odisha, India, for Ingot Wafers, Solar Cells, and Solar PV Modules. A portion will also be allocated for general corporate purposes to support the company’s operations.

The Waaree Energies IPO offers a total of 2,87,52,094 shares, distributed across various investor categories. Qualified Institutional Buyers (QIBs) are allocated 55,38,663 shares, representing 19.26% of the total. Non-Institutional Investors (NIIs) have 43,73,206 shares reserved for them, or 15.21% of the offering. Retail Individual Investors (RIIs) receive the largest portion, with 99,11,869 shares, accounting for 34.47%. Additionally, 4,32,468 shares (1.5%) are reserved for employees, while Anchor Investors are allocated 84,95,887 shares, or 29.55%.

Within the NII category, 29,57,224 shares (10.29%) are reserved for large HNIs investing over ₹10 lakh, and 14,15,982 shares (4.92%) are set aside for small HNIs investing less than that amount. This distribution ensures wide participation from different investor segments, encouraging diverse engagement with the IPO.

The IPO of Waaree Energies was susbcribed to a total of 8.8 times as of October 22 (day 2). The retail buyers booked the issue 6.38 times. The NIIs subscribed the issue 24.36 times, out of which big NIIs booked it 24.83 times and small NIIs 23.43 times. The QIBs subscribed the issue 1.73 times. The employees’ subscription stands at 3.1 times.

“Waaree Energies is currently developing an 11.4GW integrated manufacturing facility, which includes a 5.4GW solar cell unit slated for FY25 and a 6GW fully integrated plant to produce ingots, wafers, and solar cells by FY27. This vertical integration aims to enhance WEL’s operational efficiency, cut costs, and reduce reliance on external suppliers. On valuation front, the company is seeking annualized for FY25 PE of 26 times with market cap of Rs 43,178.6 crore which is reasonably priced,” said Anand Rathi Research in an IPO note.

“At a higher price band, DBEIL is demanding a P/E multiple of 15.7x (to its FY24 EPS of Rs. 13), which is at a discount to its peer average. Recently, the company has improved its margins by effectively controlling costs. Majority of the company’s projects are government related. Going forward, we believe DBEIL has strong long-term growth potential, supported by government initiatives in the construction sector and the overall positive outlook for the industry. Thus, we recommend a “Subscribe” rating for this issue,” said Choice Broking in an IPO note on Deepak Builders and Engineers IPO.

As of June 30, 2023, Waaree Energies operates four manufacturing plants in Gujarat, India, situated in Surat, Tumb, Nandigram, and Chikhli, covering an aggregate area of 136.30 acres. The Tumb and Chikhli facility is certified with ISO for the manufacturing, marketing, supply, and installation of solar PV modules. The company adheres to multiple safety standards for its PV modules.

“Over the years, Waaree Energies (WEL) has significantly expanded its aggregated installed capacity from 4GW to 12GW and became the largest manufacturer of solar PV modules in India. The company has also increased its presence in export market, particularly in USA. With successfully increasing its customer base, and its product sales, the company has grown in both of its top and bottom line. At the higher price band, WEL is seeking an EV/Sales ratio of 3.3x, which is at a discount to its peer average,” said Choice Broking in an IPO note.

Waaree Energies IPO was opened for subscription on October 21 and will be closed on October 23. The allotment of the shares is expected to be finalized on October 24. The company is likely to hit D-Street on October 28, as per the tentative schedule.

Axis Capital, IIFL Securities , Jefferies India, Nomura Financial Advisory And Securities (India), SBI Capital Markets, Intensive Fiscal Services, and ITI Capital are the book-running lead managers of the IPO.

Waaree Energies IPO has been subscribed 6.3 times as of 1300 IST on October 22. The retail investors booked the issue 5.4 times and NIIs subscribed the issue 16.52 times. Also, the employees booked the issue 2.6 times.

Waaree Energies’ Rs 4,321-crore IPO witnessed strong demand on October 22, the second day of bidding, with the issue being oversubscribed 4.52 times. Investors bid for 9.5 crore shares, far exceeding the 2.1 crore shares available, according to exchange data.

In terms of customer reach, Waaree Energies served 1,381 customers in India and 31 customers abroad as of March, 2021. These numbers were 716 and 26 for 2022, 566 and 33 for 2023, and 373 and 20 as of June, 2023, respectively.

“We believe that, with solar energy emerging as a key global theme in the transition to renewable energy, WEL is well placed to capitalize on the growing opportunity given its leading market share, strong financials, and continued focus on innovation and sustainability with capacity expansion through backward integration. Hence to enjoy the company’s legacy backed by government support transit in renewable energy domestically could be additional growth opportunities. Therefore, we recommend to “Subscribe” to this IPO issue,” said Anand Rathi Research in an IPO note.

The company received bids worth Rs 16,268.09 crore as of October 22 (Day 2) for an issue worth Rs 4,321.44 crore. The IPO has been subscribed 5.35 times, with an overwhelming retail participation of 4.79 times.

Motilal Oswal has initiated coverage on Hyundai Motors India (HMI) with a target price of Rs 2,345, indicating a potential upside of 20%. HMI holds a diverse portfolio that captures nearly 87% of India’s passenger vehicle (PV) market, boasting significant domestic market shares in several fast-growing segments—34% in mid-size SUVs, 20% in compact SUVs, and 18% in premium compact cars.

The company is well-aligned with domestic PV industry trends, as 63% of its sales mix comes from utility vehicles (UVs). HMI benefits from strong support from its parent company, Hyundai Motor Company (HMC), in management, R&D, design, and supply chain operations. HMC’s strengths in emerging mobility domains can be effectively leveraged in the Indian market, enhancing HMI’s competitive position.

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As of 10:24 AM on the second day of bidding, the public issue had been subscribed 4.02 times overall. The retail portion was booked 3.70 times, while the non-institutional investor (NII) segment saw a subscription of 10.16 times. In contrast, the qualified institutional buyer (QIB) segment was subscribed 0.08 times.

According to market observers, the Grey Market Premium (GMP) for Waaree Energies’ IPO today stands at Rs 1503, marking a Rs 30 increase from Monday’s GMP of Rs 1473. The rise in grey market sentiment is attributed to the strong response from investors in India‘s primary market. Observers further noted that the GMP could see further improvement if there is a positive trend reversal on Dalal Street.

Waree Energies IPO aims to raise a sum of Rs 4,321.44 crore. The IPO has been oversubscribed, getting bids worth Rs 10,562.45 crore as of October 22 (day 2). The IPO have two components: sale of fresh shares and OFS.

Waaree Energies stocks were commanding a 100% premium in the unofficial market, indicating a listing pop. This also means that allottees’ money may be doubled on the day of listing.

Till June 30, 2023, Waaree Energies served 373 customers in India and 20 customers internationally. In 2023, the company had 566 customers in India and 33 abroad. The numbers were 716 customers in India and 26 international customers in 2022, and 1,381 customers in India and 31 abroad as of March 31, 2021.

The company faces significant reliance on key customers, with its top 10 clients accounting for 56.77 per cent of its revenue. Additionally, there is a high dependency on exports, as 57.64 per cent of revenue comes from international sales. To address this, the company is expanding its manufacturing operations in the U.S., with an estimated investment of $70 million.

Waaree Energies offers a diverse product portfolio that includes multi-crystalline and mono-crystalline solar modules. Additionally, they provide TopCon modules, which come in various forms such as flexible, bifacial (Mono PERC), framed, unframed, and building-integrated photovoltaic (BIPV) modules, catering to a wide range of applications and customer needs.

The money raised from the Fresh Issue will mainly be used to help build a 6GW factory in Odisha, India, for making Ingot Wafers, Solar Cells, and Solar PV Modules. Some of the funds will also go towards general company needs to support its operations.

In the last three fiscal years, the company has posted a total income/net profit of Rs. 2945.85 crore / Rs. 79.65 crore (FY22), Rs. 6860.36 crore / Rs. 500.28 crore (FY23), and Rs. 11632.76 crore / Rs. 1274.38 crore (FY24). For Q1 of fY25 ended on June 30, 2024, it earned a net profit of Rs. 401.12 crore on a total income of Rs. 3496.41 crore It marked a quantum jump in its top and bottom lines from FY23 onwards.

As of June 30, 2024, Waaree Energies’ key performance indicators (KPIs) reflect its financial health and operational efficiency. The company’s market capitalization stands at Rs 42,939.36 crore. Key metrics include a Return on Equity (ROE) of 8.79 per cent, a Return on Capital Employed (ROCE) of 9.45 per cent, and a low Debt-to-Equity ratio of 0.06, indicating strong financial stability. Additionally, the Return on Net Worth (RoNW) is reported at 8.81per cent, while the Price-to-Book Value (P/BV) stands at 8.84. The company’s Profit After Tax (PAT) margin is 11.47 per cent, showcasing its profitability.

The Waaree Energies IPO has successfully raised Rs 1,276.93 crore from anchor investors, with the anchor bid date set for October 18, 2024. A total of 8,495,887 shares are offered to anchor investors. The lock-in period for 50 per cent of the shares will end after 30 days, on November 23, 2024, while the remaining shares will have a lock-in period ending after 90 days, on January 22, 2025.

The Waaree Energies IPO comprises a total of 2,87,52,094 shares, distributed across various investor categories. Of these, 55,38,663 shares (19.26per cent) are allocated to Qualified Institutional Buyers (QIBs), while 43,73,206 shares (15.21per cent) are reserved for Non-Institutional Investors (NIIs). Retail Individual Investors (RIIs) are offered 99,11,869 shares (34.47per cent), with 4,32,468 shares (1.5per cent) designated for employees. Additionally, 84,95,887 shares (29.55per cent) are set aside for Anchor Investors. Within the NII category, 29,57,224 shares (10.29per cent) are available for big HNIs investing over Rs 10 lakh, and 14,15,982 shares (4.92per cent) are reserved for small HNIs investing under that amount. The total distribution ensures a broad participation across different investor segments.

In the Waaree Energies IPO, investors can bid for a minimum of 9 shares, with further increments available in multiples of this lot size. For retail investors, the minimum investment involves 1 lot (9 shares) amounting to Rs 13,527, while the maximum is 14 lots (126 shares) totaling Rs 189,378. Small high net-worth individuals (S-HNIs) can start with a minimum of 15 lots (135 shares) for Rs 202,905 and can go up to a maximum of 73 lots (657 shares), equating to Rs 987,471. For big high net-worth individuals (B-HNIs), the minimum investment begins at 74 lots (666 shares), amounting to Rs 1,000,998.